Tyneside shipyard bosses are warning the year ahead is looking bleak, with only a handful of small jobs on the cards.

Bosses at A&P Tyne in Hebburn said the ship repair yard has secured three ferry contracts for the first quarter of the year, which will help to safeguard the current workforce of 300.

But beyond the spring, the order books are still empty.

The yard closed its Wallsend facility in October with the loss of 46 jobs after contracts dried up. The firm had reported one of its most successful years. Up until June, the yard turned over £31m but work suddenly disappeared. It is now operating from its more modern Hebburn site.

Managing director at A&P Tyne Fred Newman said he did not expect any further redundancies for the moment after securing contracts worth up to £3m in total to work on the refurbishment of three P&O ferries.

The Pride of Calais will arrive for repairs in January and the Pride of Dover in March. The North Sea ferry the Pride of York will also be serviced during those months. Mr Newman said: "We are about to start on the ferry season, which will include the Dover ferries.

"The contracts will provide continuity for the current workforce for the quarter. That is probably it in terms of work for the first quarter of the year. We have one or two bids in for ship repair but are waiting to see."

GMB regional officer Billy Coates said: "Ship repairing has always been a cyclical industry. We are confident the company will pick work up, bearing in mind it is in for some very big jobs in the offshore industry."

The Chronicle is campaigning for Prime Minister Tony Blair to approve a stop-gap project for Swan Hunter to safeguard skills before the yard starts work on two giant aircraft carriers for the Royal Navy.